Bangalore/New Delhi: After missing housing and asset sale goals for the year to 31 March, DLF Ltd, India’s largest realty company by market value, plans to focus on high-end and mid-income housing projects this year.
The Gurgaon-based realtor sold 12.5 million sq. ft of space instead of the targeted 14-15 million sq. ft in 2009-10, according to an analyst presentation on its website.
The sale of non-core assets, such as land and hospitality projects, stood at Rs1,800 crore, or one-third of the targeted Rs5,500 crore. This year, DLF plans to divest assets worth Rs2,700 crore. “This year, we would be focusing on premium and mid-housing segment for better margins,” managing director Rajiv Talwar said on Saturday.
It will launch a high-end luxury project in Mumbai’s Lower Parel area five years after it bought the 17-acre textile mill land from National Textile Corp. Ltd for Rs702 crore.
“The new launches in these three categories (luxury, premium and mid-income housing) and the expected rental income of Rs1,600 crore this year will help repay a portion of current debt,” said Talwar.
While consolidated net debt grew to Rs16,421 crore, the net debt-equity ratio was reduced to 0.53 as DLF repaid Rs5,500 crore, more than the mandatory Rs3,549 crore.
DLF’s net profit doubled to Rs426 crore for January-March, compared with the same period last year, it reported on Friday. Yearly profit declined by 61%. Its revenue, at Rs2,146 crore for the quarter, was up 59% from the year-ago period.
“From pure mid-income housing, DLF will look at better margins from its high-end projects both in Mumbai and NCR (National Capital Region),” said an analyst with a Mumbai-based brokerage, who did not want to be identified. “We will also see better rental income from its project as the commercial segment improves.”
DLF’s shares closed at Rs298.75 each, down 2.4% on the Bombay Stock Exchange on Friday, while the bourse’s benchmark Sensex index lost 1.57% to close at 16,994.60 points.